Industry Analysis & Industry Trends
Sanitary Paper Product Manufacturing survived the recession better than most industries in the manufacturing sector because of the number of everyday necessities that the industry provides. As the economy recovers, consumers will be able to afford more expensive and high-quality industry products, boosting revenue. Changing demographics, such as fewer babies and aging baby boomers have made for a shift in product ratios, with fewer diapers required and more incontinence products needed... purchase to read more
Industry Report - Industry Investment Chapter
The Sanitary Paper Product Manufacturing industry displays a high level of capital intensity, with depreciation expected at 44.4% of wages in 2014. This means that for every $1.00 spent on wages, $0.44 will be required for capital investment. Five years prior, every $1.00 spent on labor required an estimated $0.27 worth of capital. This sharp increase in capital intensity reflects an increase in labor productivity, as the past 5 years saw both a reduction in worker wages and a recent increase in capital expenditure.
Capital intensity growth generally reflects increased productivity of operations with new machinery, computers and equipment. Therefore, capital investment in the industry demonstrates manufacturer confidence in long-term growth... purchase to read more